X Ltd. manufactures Product A, which yields two by-products B and C. The actual joint expenses of manufacture for a period were Rs.8, 000. It was estimated that the profits on each product as a percentage of sales would be 30%, 25% and 15% respectively. Subsequent expenses were as follows:
|
Particulars |
Product A |
Product B |
Product C |
|
Materials |
Rs.100 |
Rs.75 |
Rs.25 |
|
Direct wages |
200 |
125 |
50 |
|
Overheads |
150 |
125 |
75 |
|
Total |
450 |
325 |
150 |
|
Sales |
Rs. 6,000 |
Rs. 4,000 |
Rs. 2,500 |
Prepare a statement showing the apportionment of the joint expenses of manufacture over the different products. Also presume that selling expenses are apportioned over the products as a percentage to sales.